An Open Invitation To Frustrated Forex Traders That Desire
Unlimited Success In The Market - Part 1
Why does one Forex traders succeed and another fail? What sets
the winners apart from the losers? Well, you won`t be surprised
to know that there are certain characteristics that all
successful Forex traders share. While many investors take
actions that aren`t in their best self interest, such as making
trading based on emotions, rather than on logic, or holding on
to a losing position so they won`t have to admit they made a bad
trade, successful Forex traders don`t do these things. But there
are some actions that they take regularly, so regularly that
they become habits. Learning about these characteristics and
habits will help make you into a successful trader as well.
To start, successful Forex traders are goal oriented. Most
people perform at their best when they`re reaching for a clear
goal. There are three basic qualities that make up a clear goal.
First, the goal must be realistic. If your goal is to double
your money every day, it sounds great, but it`s not realistic.
Setting unrealistic goals can undermine your self confidence,
you will be setting yourself up to fail. Secondly, the goal must
be attainable. Just as with a realistic goal, an attainable goal
must be within your current capabilities. The best goals are
short term goals; make your first goal a small one, and then
continue to increase your goals as you experience success.
The third trait is measurability. Goals that aren`t precise and
can`t be quantified or measured, aren`t goals at all. If your
goal is to be wealthy, you need to specify what wealthy means.
My guess is that your definition of wealth will change as your
net worth increases. If you can`t define your goal, and measure
your progress towards it, then you have no way of assessing your
progress. It becomes impossible to make any changes to your
techniques and strategies that may help you reach your goal.
Successful Forex traders set goals, and they also are confident
they can reach their goals. Confidence is the key to staying
rational, logical, and disciplined while you are trading.
Starting with small, realistic goals will help build your
confidence in yourself and your abilities.
Successful Forex traders also apply skill and logic to all their
trading decisions. They learn every day, and they use what they
know to make intelligent choices on every trade. Successful
Forex traders don`t worry about missing out on the next big
thing, they focus on making good trades. One of the most common
mistakes inexperienced Forex traders make is to trade when they
see an opportunity they think might be too good to miss. Jumping
into a position based on a hunch, or on the belief that you may
be missing an opportunity, is no different than gambling. Almost
every investor at one time or another has felt a rush of
enthusiasm for a trade, based solely on their desire not to miss
out on a great opportunity that might be available. Successful
Forex traders know their market, and are disciplined in their
trades so that they aren`t swayed by these kinds of concerns.
While these Forex traders know their market, it`s simply not
possible to understand and stay in touch with everything that
occurs in all the types of investment vehicles and markets
across the world. While some Forex traders have developed
systems that allow them to trade in multiple venues, for
instance, in different stock markets around the world, most
Forex traders specialize in a particular type of investment, and
in a particular market. If you enjoy trading in commodities
futures, that enjoyment will help you to focus and stay in touch
with events in the commodities futures market. If you aren`t
interested in currency trading, don`t trade in it. Your lack of
knowledge and motivation will cause you to lose focus and make
mistakes. Successful Forex traders tend to specialize; they pick
an area to study and they follow it closely, learning from past
trends and patterns, and from their own trades. If you`re a
beginning trader, I recommend focusing on one investment vehicle
and it`s market. Learn all you can, about the market and about
yourself, before you move into other investment types.
Whether you`re a beginning trader, a trader with some
experience, or someone who makes his or her living strictly from
trading, you can be successful. Many people think they have to
have significant capital, or years of experience, to trade
successfully. That`s not true. It`s also true that if you don`t
stay disciplined, focused, and rational, you`ll end up as a
losing trader, regardless of your level of expertise. All
successful Forex traders started as small investors; they didn`t
trade more than they could safely risk, they learned from their
mistakes, and they developed systems that worked for them and
that fit their personal styles. There aren`t different
strategies for different levels of Forex traders because the
principles are the same for everyone in the markets: logical,
focused, disciplined trading creates success.
David Jenyns, leading expert in designing profitable trading
systems, offers a huge free collection of trading related tips
and tricks. http://www.freetradings
ystems.org/